FIC Blog

We believe in – and live by – a philosophy of excellence.

Average is not good enough … Our goal at Family Investment Center is excellence. We find excellent investment products and supervise an excellent service package. We maintain a library of excellent research materials and financial planning resources. We also demand top safety and security for our clients.

We won’t settle for average. We continually seek top managers or securities and meld them into superior custom portfolios. Each palette of investments is carefully tailored to personal or family goals. We enlist excellent managers, research, resources, and effort for our clients. Don’t settle for average. You deserve excellence.

Please search our blog posts for answers to common investment questions, and we look forward to sharing our knowledge and experience with you first-hand.

Planning for Retirement: Small Business Owners Face Unique Challenges

Survey Says Few Small Business Owners are Planning Adequately

 

Small business owners are seemingly tireless entrepreneurs when it comes to building and maintaining a business, but they often forget to plan for their exit strategy. A survey by BMO Wealth Management confirms that startlingly few small business owners are planning for retirement adequately.

The survey by BMO found that 75 percent of the owners between ages 18 and 64 had not saved more than $100,000 for retirement. The good news is that nearly 40 percent of business owners age 45 to 64 had at least started an IRA and nearly 30 percent had established a 401(k). For many entrepreneurs and small business owners, their way of planning for retirement is to invest in their business and sell it when the time is right. Essentially, the business becomes their retirement plan.

In some cases, the business owner will wish to keep the business alive. Therefore, they transfer ownership to a family member and get a share of the future wealth in return, which helps to support their retirement. Unfortunately, this doesn’t always work out as planned. Different management methods, a jarring transition between owners, and/or the unpredictability of the market can wreak havoc on a business, potentially leaving the retiree with little or nothing for their retirement.

A number of business owners will say that if their planning for retirement hits any snags, they’ll simply delay retirement. While this seems like a fair way to approach retirement, plans made while relatively young and healthy can turn quite suddenly as we age and our health begins to fail. For example, a survey by the Employee Benefit Research Institute reveals that nearly 55 percent of people surveyed said they retired earlier than expected due to health issues.

What steps can you take in planning for retirement that can help protect your investments?

·         Diversify: Putting a set amount of money per month in a variety of investments is a smart move because you’re spreading out your wealth in several directions. As the market ebbs and flows, you’ll see the advantages of a diversified portfolio. Talk to your investment advisor about popular options, like an IRA or 401(k).

·         Specialize: Ask your investment advisor about retirement plans that are specifically for small businesses. For instance, a SEP-IRA, solo 401(k), or SIMPLE IRA.

·         Know What You Need: How many of your current expenses are lumped into your business dealings? You’re won’t have that luxury when you retire, so crunch the numbers to get an accurate estimate of what you’ll need on a monthly basis when you retire.


If you’re like most small business owners, you have few hours in the day to research retirement vehicles on your own. Talk to a fee-only professional advisor like our team at Family Investment Center. Since our founding, we’ve maintained a client-first, client-focused philosophy. Today, we welcome you at our table to learn more about what makes us truly unique among investment advisor teams.

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With the Inauguration Pending, What are Your Investing Strategies Now?

Investing Strategies in a Time of Uncertainty

 

The election is officially over and inauguration is just weeks away. Many Americans were surprised at the results as our nation begins a journey with a controversial president. Many investors are beginning to take a second or third look at their investing strategies and preparing for this change.

Actually, many investment professionals may share the viewpoint to stay the course and not change investment portfolios in any drastic way. Refraining from reacting impulsively — while maintaining a focus on your long-term retirement investment plan — may help lead you toward new confidence as presidential changes officially unfold.  Note: While analysts seemed wrong about the predicted election outcome, U.S. economic strength was actually improving leading up to the vote.  Policies and changes to come, say some analysts, could actually lead to even more economic growth. If this trend continues into 2017, investment options could improve and market levels could return to “typical.”

It’s also important to realize that it’s not unusual for emotions to run high as markets move. Most investors won’t need to access the money they have in investments for at least a decade, which means even if market volatility affects your balances, there is plenty of time for a rebound. Besides, experts have noted that other economic factors remain strong and will carry most investors through the volatility.

If you are nearing your projected retirement date and want to make some changes, ask a professional commission-free investment advisor for help. If you haven’t yet talked to an investment advisor, now is the time. Talking with your advisor about your plan is a great way to review your situation, make adjustments as needed and regain some of that confidence you had before election night.

Historically, when considering long-term investing strategies, the stock market has demonstrated success as a way to build up a nest egg. The ebb and flow of the market is less dramatic when you look at its movement over decades. Even during recessions, such as 2008, the market historically has recovered.

At Family Investment Center, we offer a consistent, commission-free and jargon-free atmosphere for addressing all of your questions and concerns. Contact us today and find out why our team has been interviewed by sources like The Wall Street Journal, Forbes andU.S. News and World Report for our slightly “unconventional” approach.

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Who Are You Taking Investment Advice From?

Experts Suggest Investment Advice May be Best Left to the Professionals

 

Most people who invest money and are purposeful about their retirement plans believe they have the basics of investing down. They may even consult with well-meaning friends and family when they are seeking outside guidance. However, some of the most common mistakes in investing may be related to taking investment advice from someone other than a professional – along with not keeping up with investing innovations and relying on outdated information. Read on for some other challenges that may be holding you back from the success you want.

Some investing mistakes date back to early family experiences. Ideas about money are often shaped by what a person saw and heard growing up. In reality, what many people are taught growing up is very different now as the landscape of investing has changed, particularly in the financial products, services and fees under which investors operate today. These family experiences may mean an investor follows and seeks advice from friends, neighbors, coworkers and family members; but these people are not likely to carry professional investment experience. Seeking advice this way can also lead to a strong emotional connection instead of a neutral, strategic approach to investing – and this can cost an investor significantly over time.

Another common investing mistake can be connected to changing an investment strategy when feelings or emotions change. Today, you may want to ask yourself, “Is my investing driven by feelings and emotions?” This can manifest from watching media headlines and wanting to make quick changes rather than staying the course through the natural ups and downs of the markets.  

It’s human nature to follow the crowd. However, when it comes to investments, giving in to that urge to follow the crowd can lead to investment setbacks. Everyone’s situation is different. What amounts to an excellent decision for one person might be a wrong move for the next, depending on life situations and goals. Most investors with long-term success are operating on a consistent plan that is tailored to their situation, not everyone else’s. Also note that many professional investment advisors suggest caution around making decisions for short-term gains in favor of long-term growth. It’s vitally important to stick to a long-term plan, even and perhaps especially during times when the market is volatile.

Performance is an easy metric to measure, but it’s not the one that matters most. Value and convenience, both of which are metrics more subjective and harder to measure than performance, carry just as much weight as pure performance.

Some people fail to reach success because they think the investments are boring. Investment advisors reject that notion; they see investing as a path to key lifestyle benefits that are definitely not boring. They also know that it’s one of the biggest reasons people fail – or a reason they never get started. A visit to an investment advisor who truly cares about helping clients should not be boring, but instead, should help you feel excited and confident about the direction you’re headed.

At Family Investment Center, we have observed investors time and time again come in with reservations and leave with a sense of confidence they didn’t know they could have toward their long-term goals for investing. We know that many people have an outdated view of money practices, and we are here to listen. Contact us today and let’s get started with a plan that makes sense for your situation.

 

Listen to jargon-free insights from the Money is Freedom podcast, produced by Dan Danford, founder/CEO of Family Investment Center, at Sound Cloud and iTunes. Enjoy more about advice from friends and family on the episode titled “Free Advice is Poor Advice.” https://soundcloud.com/money-is-freedom/102-free-advice

 

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Your Freedom Tour

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Dan Danford Shares Advice on Writing and Publishing Book; Danford to Speak at Two KC Area “Lunch and Learn” Events

For many it’s a labor of love. For others, it’s overwhelming to think about what it takes to start and finish the writing of a book. This is something Dan Danford, CEO of Family Investment Center, knows quite well. Danford will relay the experiences he gathered while writing his book, “Stuck in the Middle” at two KC-area Lunch and Learn Events.

Danford, who has worked for decades in investing, wrote the book to highlight the mistakes investors make that jeopardize their financial success. The book also offers tips on how to fix those mistakes. The 20 chapters in the book cover everything from how paying off a mortgage can hurt retirement, investment mistakes endorsed by the media, the stock market (why/how it’s not a casino), how banks are for managing cash (not investing) and many other topics.

Danford says the book is a valuable way to share insights and knowledge gained across his career. He began his career in business in 1984 as a bank trust officer, where he was responsible for managing tax-qualified retirement plans and IRAs. He has since visited with thousands of people who are planning for retirement. He is now sharing his knowledge in the book that asks the question “What if your middle class background is holding you back from the financial success you want?”

Danford will speak at two “Lunch and Learn” events with the topic – “What’s your truth? Using your story to write a book, and using that book to grow your business.”

The events are:

 

·         Friday, December 9, at the Northland Regional Chamber of Commerce office, 634 NW Englewood Rd, Kansas City, MO. Click here for more information. 12 p.m. to 1:30 p.m.

·         Tuesday, December 13, at the St. Joseph Chamber of Commerce, 3003 Frederick Avenue, St. Joseph, MO. Click here for more information. 11:30 a.m. to 1 p.m.

 

Danford will also share information about investing that he covers in his book, largely written for middle class investors. Danford said he has been surprised, quite often, at the mistakes he encounters, which are mostly ideas that conflict with what professional investors know to be true today. He said many people haven’t kept up with innovations in investing, which could lead them to decisions based on outdated information.

“For many investors, their ideas about money come from early family experiences, which leave a powerful imprint on them that makes change difficult to achieve. However, it’s easy to see that the world we live in today is far different from what our parents experienced at the same point in their lives. Everything from fees to financial products and services – they’ve all evolved, and investors need to evolve as well,” says Danford.

 

Learn more at Stuck in the Middle: The Mistakes That Jeopardize Your Financial Success and How to Fix Them.

 
Listen to insights on “Money is Freedom,” a new podcast available on iTunes and Sound Cloud.

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